INVESTOR PUSHES SAN DIEGO’S AMYLIN TO PURSUE A SALE

Billionaire investor Carl Icahn demanded Wednesday that Amylin Pharmaceuticals allow him and other shareholders to nominate candidates to the diabetes drugmaker’s board in light of the board’s recent reported rejection of a takeover offer.

In an open letter to Amylin’s board, Icahn said he is aware that the deadline for nominations has passed, but said that because the board rejected a buyout offer from fellow drugmaker Bristol-Myers Squibb, the San Diego company should give shareholders a new 10-day period to make nominations.

The activist investor, who is known for buying and shaking up struggling companies with mixed success, said in the letter that if Amylin doesn’t announce plans to do so by the end of the day today, he will “have no choice but to seek in court an extension of the nomination deadline as well as other avenues of redress.”

Amylin rejected a $22-a-share takeover offer from Bristol-Myers Squibb in February, according to two people with knowledge of the matter who declined to be identified because the approach was private. Last month, Amylin made a public offering of 13 million common shares and issued stock options to company executives at about $16 a share, actions Icahn criticized in the open letter Wednesday.

In his letter Wednesday, Icahn said it is “reprehensible” that the board still hasn’t acknowledged or denied the media reports and called the board’s decision to not pursue a sale a “big mistake.”

Amylin released a statement Wednesday saying that it disagrees with Icahn’s characterizations and that his allegations have no merit.

“Amylin’s board is fully aware of its fiduciary duties, and is committed to always acting in the best interests of all stockholders,” the statement read. “The board continually considers all options available and is relentlessly focused on creating the greatest value for our stockholders.”

Amylin makes the twice-a-day diabetes drug Byetta and a newer once-a-week version called Bydureon. Both drugs were marketed through a partnership with Eli Lilly, but the companies announced in November that they were ending their partnership. Amylin is taking over marketing both products outside the U.S., and it has been looking for a new partner to help sell the drugs.

Amylin also makes a diabetes drug called Symlin.

Icahn, Amylin’s third-largest stockholder, said that while Bydureon has great potential and could make Amylin very attractive as an acquisition, the drugmaker doesn’t have enough scale to get the most out of its products. He said that while a proxy fight would cause problems for the company, he won’t shy away from one if he thinks the board isn’t acting in the best interests of shareholders.

Icahn said he also requested the company’s books and records, so he can examine the circumstances surrounding the Bristol-Myers Squibb proposal as well as recent stock options awarded to the company’s executives.

Amylin shares rose fell 24 cents to $23.88 Wednesday. They are down from a 52-week high of $25.84 last week. They traded as low as $8.03 per share in early October.